How Marketing Can Recession Proof a Small Business
Experts predict that there’s a 60% chance that the U.S. and the global economy will enter a recession in 2025. From inflation to tariffs, small business owners are facing higher costs and increased uncertainty on what business look like by the end of the year.
If you are one of the 33 million Americans that owns a small business, you may be wondering what you can do. Luckily, the right marketing focus can come to the rescue to help your business thrive even in economic uncertainty.
Build Your Digital Presence
Three out of four people look online to find a business. It has become the most convenient way to find a company to work with – whether looking for someone to help with a home project, provide photography services, or offer personal services.
For your small company, if you aren’t ranking on the first page of Google; people aren’t finding you. It’s estimated that nearly 90% of people will not go past the first page of search results when they are looking for a company. And, to truly get found by your customer base, you need to be ranking in the top three.
Getting there starts with a Google Business Profile and making it do the work for you. The top-ranking Google profiles can receive up to 300+ clicks per month! To get there, your Google Business Profile needs to include essential information about your business and balance search engine optimization (SEO) tools to rank higher.
Fewer shoppers during the recession lead to higher competition, which means small businesses in particular need every advantage to be found by those who are seeking their products or services. Ranking higher in search results can put you in found of those audiences and help to bring sales, even when wallets are tightening. To recession proof a small business, your digital presence doesn’t have to mean you are spending more money on ads – it starts by building your foundation so you can be found, with ads as an optional investment.
Get Reviews From Customers
Social proof – or the idea that people look to others to learn about whether they should trust a small business – can give new and existing customers insight on what to know about you and your company.
Recent data shows that this can be extremely powerful in helping consumers decide on who to work with. In fact, data shows that 70% of people will trust a recommendation from someone they don’t even know.
Whether via your Google Business Profile or a social media platform like Facebook, you can gather reviews from your customers to provide insight into what they thought about your products/services and experience with your business.
Should you pay for reviews? No.
There are many services out there that will pump your profiles with tons of perfect five-star reviews. While this may be tempting to do, it can actually have the reverse effect. (In fact, Google recently announced that they will be using AI to crack down on people who are doing this – and it could lead to a profile ban if caught.)
But I don’t have time to manage reviews!
I’ve asked my customers, and they never do it.
What if someone leaves me a bad review?
These are some of the top questions we hear from the small business owners we work with in getting reviews from their customers. Getting reviews doesn’t have to be scary or time intensive.
An automated review platform means that you can hit your customers with a request at the right time, increasing the likelihood of getting a review. And, it can ensure a steady stream of reviews, which helps with your Google ranking, too.
You may not be able to control the feedback your customers give you – but that’s okay. About 80% of consumers will check reviews before they buy a product; but they aren’t just looking at the rating. They are looking for authenticity and in the event of a poor experience, how the owner or business handled the situation.
Small business owners can learn from the feedback too – reviews can be a good way to know how you’re delivering a positive experience for your customers and where you need to improve. As a result, it can help improve what you deliver – and improve your business.
Keep Your Customers Coming Back
Did you know that getting a new customer can cost up to 10x more than selling to a current customer?
Often times, small business owners are focused on expanding their reach into new markets and to get new consumers to buy into their products. The thinking may be that the broader reach will result in more sales. It can be more costly for businesses to do this. And, to recession proof a small business, focusing on how to maximize where you’re spending your money is important – which means that a focus on marketing to your current customers could be a good area.
This doesn’t mean you have to make personal calls, texts, or emails to keep them engaged (although this helps – but we get it, you are busy!). Automating communication across these channels can help to engage customers. Email marketing, for instance, can be an amazing channel for small business owners to connect with their customers. An ongoing newsletter or sharing promotional information can make sure you are staying top of mind with people who have previously worked with you.
Data also shows that your current customers will spend nearly 70% more than new customers. This is because they trust you and they know what you will deliver. So, focusing efforts on how to deliver better customer experience can be meaningful. They can also become a source for referral business – helping you build your business by spreading the word about your company.
The Role of Marketing to Recession Proof a Small Business
Most often, small business owners look at cutting costs or reducing their products and services to survive a recession. But, looking first at wins in your marketing can be an important first step in recession proofing your small business.
And, marketing doesn’t have to break the bank. Skip the ongoing investments in ads and focus instead on building your marketing foundations to get where you need to go. Beyond Five Stars Marketing can support you wherever you may be, to help to build your business so you can be found online, get customers, and grow local.
Interested in learning more? Send us a note and we can build a plan to build your digital presence and get more sales.